BLBG:Treasuries Lead Declines in Bonds; Indian Shares Retreat
Treasuries fell for a seventh day, the longest run of declines since June 2006, before data that may show U.S. manufacturing expanded and fewer Americans filed for unemployment benefits. U.S. stock index futures rose, European shares were little changed and the pound weakened.
The 10-year Treasury yield climbed three basis points to 2.30 percent at 9:35 a.m. in London, with the similar-maturity German bund yield advancing three basis points. Standard & Poor’s 500 Index futures rose 0.2 percent and the Stoxx Europe 600 Index (SXXP) was little changed near the highest level since July. The pound depreciated against 13 of 16 most traded peers, while the euro snapped a two-day drop versus the dollar. Soybeans jumped to a six-month high.
The number of Americans applying for jobless benefits fell last week while manufacturing in the Philadelphia region expanded, economists said before reports today. The U.K. sells 30-year bonds today after Fitch Ratings said Britain risks losing its top investment grade status, with Spain and France also auctioning debt.
“The U.S. economy is undoubtedly getting better,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $71 billion in Tokyo. “The bond market is likely to remain weak.”
The yield on the 10-year U.S. Treasury bond rose to as high as 2.35 percent, the most since Oct. 28. The gain in S&P 500 futures indicated the U.S. equities gauge will rebound from yesterday’s 0.1 percent drop. The Dow Jones Industrial Average (INDU) has risen for the past six days, its longest rally in more than a year.
Jobless Claims
A government report at 8:30 a.m. in Washington may show the number of Americans applying for jobless benefits fell by 5,000 to 357,000 last week, according to the median forecast in a Bloomberg survey of economists. Other data may show manufacturing in the Philadelphia region expanded in March, while growth in New York factory output slowed.
Three shares gained for every two that fell in the Stoxx 600. HeidelbergCement AG advanced 3.7 percent after predicting operating profit and sales will rise this year. Pernod-Ricard SA declined 3.1 percent as Groupe Bruxelles Lambert SA sold a 499 million-euro stake in the producer of wines and spirits.
The Spanish 10-year bond yield fell three basis points before the government sells as much as 3.5 billion euros of debt maturing in January 2015, April 2016 and July 2018. The 10-year French bond declined for the second day, with the yield rising three basis points, as the debt office auctions as much as 8.5 billion euros of nominal securities due in April and October 2014, February 2016 and February 2017, and index-linked debt maturing in July 2019, July 2022 and July 2027.
Emerging Markets
The MSCI Emerging Markets Index (MXEF) fell 0.1 percent, halting a two-day, 1.6 percent advance. The Shanghai Composite Index slipped 0.7 percent after foreign direct investment in China dropped for a fourth straight month, taking its two-decline to 3.3 percent, the most since Aug. 9. The BSE India Sensitive Index lost 1.2 percent, its first retreat in five days, as the central bank kept rates on hold. The Micex Index (MICEX) lost 0.4 percent in Moscow, snapping two days of gains.
Soybeans rose as much as 0.9 percent to $13.6175 a bushel, the highest price since Sept. 16. Natural gas dropped 1.2 percent to $2.3866 per a million British thermal units.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net